Provident Financial Services, Inc. Announces Fourth Quarter and Full Year Earnings, and Annual Meeting Date

GlobeNewswire | Provident Financial Services, Inc.
Today at 10:15pm UTC

ISELIN, N.J., Jan. 27, 2026 (GLOBE NEWSWIRE) -- Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $83.4 million, or $0.64 per basic and diluted share for the three months ended December 31, 2025, compared to $71.7 million, or $0.55 per basic and diluted share, for the three months ended September 30, 2025 and $48.5 million, or $0.37 per basic and diluted share, for the three months ended December 31, 2024. For the year ended December 31, 2025, net income totaled $291.2 million, or $2.23 per basic and diluted share, compared to $115.5 million, or $1.05 per basic and diluted share, for the year ended December 31, 2024. Prior year earnings include six and a half months of combined operations with Lakeland Bancorp, Inc. (“Lakeland”), compared to a full year in 2025. Additionally, while there were no transaction costs related to our merger with Lakeland during 2025, for the three months and year ended December 31, 2024, these costs totaled $20.2 million and $117.0 million, respectively. The 2024 full year results included an initial Current Expected Credit Loss ("CECL") provision for credit losses on loans of $60.1 million recorded as part of the Lakeland merger.

Anthony J. Labozzetta, President and Chief Executive Officer commented, “Provident Bank finished 2025 with a third consecutive quarter of record revenues, notable momentum across all our business lines and strong profitability. Organic growth remains our top priority, supported by a loan pipeline that has consistently been over $2.5 billion for the past four quarters, and several investments we have made to sustain growth in non-interest income. Our organization continues to focus on several strategic initiatives to help profitably grow our business, including growing our market share in middle market banking, insurance and wealth management. Looking ahead to 2026, we expect continued earnings per share growth and to compound tangible book value, while also making the necessary investments to sustain our momentum over the long-term."

Performance Highlights for the Fourth Quarter of 2025

  • The Company's annualized returns on average assets, average equity and average tangible equity(1) were 1.34%, 11.78% and 17.58% for the quarter ended December 31, 2025, compared to 1.16%, 10.39% and 16.01% for the quarter ended September 30, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.
  • The Company's annualized adjusted pre-provision, net-revenue returns on average assets, average equity and average tangible equity(2) were 1.78%, 15.68% and 21.78% for the quarter ended December 31, 2025, compared to 1.76%, 15.74% and 22.20% for the quarter ended September 30, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.
  • The Company reported record revenue for a third consecutive quarter of $225.7 million for the three months ended December 31, 2025, comprised of record net interest income of $197.4 million and record non-interest income of $28.3 million, compared to revenue of $221.8 million for the prior quarter.
  • Average interest-earning assets increased $306.7 million, or an annualized 5.41%, for the quarter ended December 31, 2025, versus the trailing quarter.
  • The Company's total commercial loan portfolio, including mortgage warehouse lines, commercial mortgage, multi-family and construction loans, increased $225.3 million, or 5.35% annualized, to $16.93 billion as of December 31, 2025, from $16.70 billion as of September 30, 2025.
  • The Company's total deposits increased $182.4 million, or 3.79% annualized, to $19.28 billion as of December 31, 2025, from $19.10 billion as of September 30, 2025, while total core deposits, which exclude certificates of deposit, increased $259.6 million, or 6.55% annualized, to $15.99 billion as of December 31, 2025, from $15.73 billion as of September 30, 2025.
  • As of December 31, 2025, the Company's loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.74 billion, with a weighted average interest rate of 6.22%, compared to $2.87 billion, with a weighted average interest rate of 6.15%, as of September 30, 2025.
  • Net interest margin increased one basis point to 3.44% for the quarter ended December 31, 2025, compared to the trailing quarter, primarily attributable to the favorable repricing of deposits, partially offset by a reduction in net accretion of purchase accounting adjustments related to the Lakeland merger, combined with the repricing of adjustable rate loans. The core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased seven basis points from the trailing quarter to 3.01%. The average yield on total loans decreased 11 basis points to 5.98% for the quarter ended December 31, 2025, compared to the trailing quarter, while the average cost of deposits, including non-interest-bearing deposits, decreased four basis points to 2.10% for the quarter ended December 31, 2025.
  • The Company recorded a $1.2 million provision benefit for credit losses, which included a $2.0 million provision charge for credit losses on loans that was more than offset by a $3.2 million provision benefit for credit losses on off-balance sheet credit exposures for the quarter ended December 31, 2025. The allowance for credit losses as a percentage of loans decreased to 0.95% as of December 31, 2025, from 0.97% as of September 30, 2025.
  • Asset quality improved in the quarter, as non-performing loans to total loans as of December 31, 2025 decreased to 0.40% from 0.52% as of September 30, 2025, while non-performing assets to total assets as of December 31, 2025 decreased to 0.32% from 0.41% as of September 30, 2025. The $22.0 million, or 21.90% reduction in non-performing loans for the quarter was driven by the sale of non-accruing notes, with associated charge-offs of $1.3 million. Total net charge-offs of $4.2 million for the quarter represented an annualized 9 basis points of average loans.
  • In the fourth quarter of 2025, Provident Bank entered into an agreement to purchase energy production tax credits of approximately $52.0 million, which resulted in an annual tax benefit of $3.4 million for 2025 that was recognized as a reduction in income tax expense.
  • Tangible book value per share(3) increased 3.78% to $15.70 and our tangible common equity ratio(3) increased 26 basis points to 8.48% as of December 31, 2025. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 14 of the earnings release.
  • As of December 31, 2025, exposure to non-depository financial institution lending was largely comprised of $357.1 million of mortgage warehouse loans.

Annual Meeting Date Set

The Annual Meeting of Stockholders will be held on May 21, 2026 at 10:00 a.m. Eastern Time as a virtual meeting. March 27, 2026 has been established as the record date for the determination of stockholders entitled to vote at the Annual Meeting.

Results of Operations

Three months ended December 31, 2025 compared to the three months ended September 30, 2025

For the three months ended December 31, 2025, net income was $83.4 million, or $0.64 per basic and diluted share, compared to net income of $71.7 million, or $0.55 per basic and diluted share, for the three months ended September 30, 2025.

Net Interest Income and Net Interest Margin

Net interest income increased $3.1 million to $197.4 million for the three months ended December 31, 2025, from $194.3 million for the trailing quarter. The increase in net interest income was primarily due to the favorable repricing of deposits and growth in average earning assets, partially offset by the repricing of adjustable rate loans.

The Company’s net interest margin increased one basis point to 3.44% for the quarter ended December 31, 2025, from 3.43% for the trailing quarter. The average yield on interest-earning assets for the quarter ended December 31, 2025 decreased 10 basis points to 5.66%, compared to the trailing quarter. The average cost of interest-bearing liabilities for the quarter ended December 31, 2025 decreased 13 basis points to 2.83%, compared to the trailing quarter. The average cost of interest-bearing deposits for the quarter ended December 31, 2025 decreased seven basis points to 2.60%, compared to 2.67% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the quarter ended December 31, 2025, compared to 2.14% for the trailing quarter. The average cost of borrowed funds for the quarter ended December 31, 2025 was 3.94%, compared to 3.96% for the quarter ended September 30, 2025. The net accretion of purchase accounting adjustments contributed 43 basis points to the net interest margin for the quarter ended December 31, 2025, compared with 49 basis points in the trailing quarter. The reduction in purchase accounting accretion was largely due to the prepayment of certain loans that resulted in accelerated amortization of acquisition premiums and a decrease in accelerated accretion related to prepayments of loans with acquisition discounts. The core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased seven basis points from the trailing quarter to 3.01%.

Provision for Credit Losses

For the quarter ended December 31, 2025, the Company recorded a $1.2 million provision benefit for credit losses compared to a $7.0 million provision charge for the trailing quarter. The provision benefit consisted of a $2.0 million provision charge for credit losses related to loans and a $3.2 million provision benefit for credit losses related to off-balance sheet credit exposures, compared with provision charges for credit losses on loans and off-balance sheet credit exposures of $4.5 million and $2.5 million, respectively, for the quarter ended September 30, 2025. The provision for credit losses on loans in the quarter was primarily attributable to overall growth in the loan portfolio. For the three months ended December 31, 2025, net charge-offs totaled $4.2 million, or an annualized 9 basis points of average loans, compared to net charge-offs of $5.4 million, or an annualized 11 basis points of average loans for the trailing quarter.

Non-Interest Income and Expense

For the three months ended December 31, 2025, non-interest income totaled $28.3 million, an increase of $892,000, compared to the trailing quarter. Net gains on securities transactions increased $623,000 compared to the trailing quarter, to $690,000 for the three months ended December 31, 2025, primarily due to profits on calls of corporate securities. Wealth management income increased $278,000 compared to the trailing quarter, to $7.6 million for the three months ended December 31, 2025, mainly due to an increase in the average market value of assets under management during the period. Additionally, bank owned life insurance ("BOLI") income increased $128,000 compared to the trailing quarter, to $2.8 million for the three months ended December 31, 2025, primarily due to an increase in benefit claims. Fees and commissions decreased $236,000 to $11.1 million for the three months ended December 31, 2025, compared to the trailing quarter primarily due to a decrease in loan prepayment fee income.

Non-interest expense totaled $114.7 million for the three months ended December 31, 2025, an increase of $1.6 million, compared to $113.1 million for the trailing quarter. Other operating expenses increased $2.0 million to $15.4 million for the three months ended December 31, 2025, compared to the trailing quarter, driven by increases in legal, professional and other miscellaneous expenses. Compensation and benefits expense increased $1.1 million to $64.3 million for the three months ended December 31, 2025, compared to $63.2 million for the trailing quarter primarily attributable to an increase in the accrual for performance-based incentive compensation, partially offset by a decrease in employee medical benefits. Partially offsetting these increases, amortization of intangibles decreased $919,000 to $8.6 million for the three months ended December 31, 2025 primarily due to a scheduled reduction in the rate of core deposit intangible amortization related to Lakeland. FDIC insurance decreased $660,000 to $2.8 million for the three months ended December 31, 2025, compared to $3.4 million for the trailing quarter, primarily due to a decrease in the assessment rate.

The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) was 1.84% for the quarter ended December 31, 2025, compared to 1.83% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) was 50.97% for the three months ended December 31, 2025, compared to 51.01% for the trailing quarter.

Income Tax Expense

For the three months ended December 31, 2025, the Company's income tax expense was $28.8 million with an effective tax rate of 25.7%, compared with income tax expense of $29.9 million with an effective tax rate of 29.4% for the trailing quarter. The decrease in tax expense and the effective tax rate for the three months ended December 31, 2025, compared with the trailing quarter was primarily related to tax credits recognized in the current quarter, which reduced the Company's taxable income by $3.4 million.

Three months ended December 31, 2025 compared to the three months ended December 31, 2024

For the three months ended December 31, 2025, net income was $83.4 million, or $0.64 per basic and diluted share, compared to net income of $48.5 million, or $0.37 per basic and diluted share, for the three months ended December 31, 2024. While there were no transaction costs related to our merger with Lakeland during 2025, these costs totaled $20.2 million for the three months ended December 31, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $15.7 million to $197.4 million for the three months ended December 31, 2025, from $181.7 million for same period in 2024. The increase in net interest income was primarily due to favorable repricing of deposits and growth in average earning assets.

The Company’s net interest margin increased 16 basis points to 3.44% for the quarter ended December 31, 2025, from 3.28% for the same period last year. The average yield on interest-earning assets for the quarter ended December 31, 2025 remained flat at 5.66% compared to the quarter ended December 31, 2024. The average cost of interest-bearing liabilities decreased 20 basis points for the quarter ended December 31, 2025 to 2.83%, compared to 3.03% for the fourth quarter of 2024. The average cost of interest-bearing deposits for the quarter ended December 31, 2025 was 2.60%, compared to 2.81% for the same period last year. The average cost of total deposits, including non-interest-bearing deposits, was 2.10% for the quarter ended December 31, 2025, compared with 2.25% for the quarter ended December 31, 2024. The average cost of borrowed funds for the quarter ended December 31, 2025 was 3.94%, compared to 3.64% for the same period last year. The core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased 16 basis points from the same period last year to 3.01%.

Provision for Credit Losses

For the quarter ended December 31, 2025, the Company recorded a $1.2 million provision benefit for credit losses compared to an $8.9 million provision charge for the same period last year. The provision benefit consisted of a $2.0 million provision charge for credit losses related to loans and a $3.2 million provision benefit for credit losses related to off-balance sheet credit exposures, compared with provision charges for credit losses on loans and off-balance sheet credit exposures of $7.8 million and $1.1 million, respectively for the quarter ended December 31, 2025. The provision for credit losses on loans in the 2025 fourth quarter was primarily attributable to overall growth in the loan portfolio. For the three months ended December 31, 2025, net charge-offs totaled $4.2 million, or an annualized 9 basis points of average loans, compared to net charge-offs of $5.5 million, or an annualized 12 basis points of average loans for the same period last year.

Non-Interest Income and Expense

Non-interest income totaled $28.3 million for the quarter ended December 31, 2025, an increase of $4.1 million, compared to the same period in 2024. Fee income increased $1.4 million to $11.1 million for the three months ended December 31, 2025, compared to the same period in 2024, primarily due to an increase in loan prepayment fee income. Other income increased $953,000 to $2.3 million for the three months ended December 31, 2025, compared to the quarter ended December 31, 2024, primarily due to an increase in net gains on the sale of SBA loans. Net gains on securities transactions increased $704,000 to $690,000 for the three months ended December 31, 2025, compared to the same period in 2024, primarily due to an increase in profits on calls of corporate securities. Insurance agency income increased $565,000 to $3.9 million, for the three months ended December 31, 2025, compared to the same period in 2024, largely due to strong retention revenue and new business activity, while BOLI income increased $529,000 to $2.8 million for the three months ended December 31, 2025, compared to the same period in 2024 largely due to an increase in benefit claims.

Non-interest expense totaled $114.7 million for the three months ended December 31, 2025, a decrease of $19.6 million, compared to $134.3 million for the three months ended December 31, 2024. Merger-related expense decreased $20.2 million for the three months ended December 31, 2025, compared to the same period in 2024. Amortization of intangibles decreased $933,000 to $8.6 million for the three months ended December 31, 2025, compared to $9.5 million for the same period in 2024, largely due to a scheduled reduction in the rate of core deposit intangible amortization related to Lakeland, as a result of lower projected attrition on core deposits. Additionally, data processing expense decreased $771,000 to $9.1 million for the three months ended December 31, 2025, compared to the same period in 2024, primarily due to core processing system expenses in the prior year related to the addition of Lakeland. Partially offsetting these decreases in non-interest expense, compensation and benefits expense increased $4.4 million to $64.3 million for three months ended December 31, 2025, compared to $59.9 million for the same period in 2024, primarily due to an increase in the accrual for performance-based incentive compensation.

The Company’s annualized adjusted non-interest expense as a percentage of average assets(5) was 1.84% for the quarter ended December 31, 2025, compared to 1.90% for the same period in 2024. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(6) was 50.97% for the three months ended December 31, 2025 compared to 55.43% for the same respective period in 2024.

Income Tax Expense

For the three months ended December 31, 2025, the Company's income tax expense was $28.8 million with an effective tax rate of 25.7%, compared with $14.2 million with an effective tax rate of 22.6% for the three months ended December 31, 2024. The increase in tax expense for the three months ended December 31, 2025, compared with the three months ended December 31, 2024, was largely due to an increase in taxable income. The increase in the effective tax rate for the three months ended December 31, 2025, compared with the three months ended December 31, 2024 was primarily due to a prior year $4.2 million tax benefit related to the revaluation of deferred tax assets.

Year ended December 31, 2025 compared to the year ended December 31, 2024

For the year ended December 31, 2025, net income totaled $291.2 million, or $2.23 per basic and diluted share, compared to net income of $115.5 million, or $1.05 per basic and diluted share, for the year ended December 31, 2024. While there were no transaction costs related to our merger with Lakeland in 2025, those costs totaled $117.0 million, including an initial CECL provision for credit losses on loans recorded as part of the Lakeland merger, for the year ended December 31, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $160.0 million to $760.6 million for the year ended December 31, 2025, from $600.6 million for 2024. The increase in net interest income was largely driven by growth in average earning assets including net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments, further aided by lower rates on funding.

For the year ended December 31, 2025, the net interest margin increased 13 basis points to 3.39%, compared to 3.26% for 2024. The weighted average yield on interest earning assets remained flat at 5.68% for the year ended December 31, 2025, compared to 2024, while the weighted average cost of interest-bearing liabilities decreased 14 basis points to 2.91% for the year ended December 31, 2025, compared to 3.05% last year. The average cost of interest-bearing deposits decreased 20 basis points to 2.63% for the year ended December 31, 2025, compared to 2.83% in the prior year. Average non-interest-bearing demand deposits increased $602.1 million to $3.72 billion for the year ended December 31, 2025, compared with $3.12 billion for 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.11% for the year ended December 31, 2025, compared with 2.26% for 2024. The average cost of borrowings for the year ended December 31, 2025 was 3.90%, compared to 3.71% in the prior year. The core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased 9 basis points from last year to 2.92%.

Provision for Credit Losses

For the year ended December 31, 2025, the Company recorded a $3.6 million provision for credit losses, compared with a provision for credit losses of $87.6 million for 2024. The provision consisted of a $4.1 million provision charge for credit losses related to loans and a $545,000 provision benefit for credit losses related to off-balance sheet credit exposures, compared with provision charges for credit losses on loans and off-balance sheet credit exposures of $83.6 million and $4.0 million, respectively, for 2024. The provision for credit losses on loans for the year ended December 31, 2025 was primarily attributable to overall growth in the loan portfolio. The provision for credit losses on loans for the prior year period was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million, recorded as part of the Lakeland merger. For the year ended December 31, 2025, net charge-offs totaled $12.8 million or an annualized seven basis points of average loans, compared with net charge-offs of $14.6 million, or an annualized nine basis points of average loans, for the year ended December 31, 2024.

Non-Interest Income and Expense

For the year ended December 31, 2025, non-interest income totaled $109.8 million, an increase of $15.7 million, compared to 2024. Fee income increased $8.7 million to $42.8 million for the year ended December 31, 2025, compared to 2024, primarily due to increases in deposit fee income, loan prepayment fee income and debit and credit card related fee income. Other income increased $3.9 million to $8.5 million for the year ended December 31, 2025, compared to $4.5 million for 2024, primarily due to an increase in gains on sales of SBA and mortgage loans and other miscellaneous income. Net gains on securities transactions increased $3.8 million for the year ended December 31, 2025, primarily due to a prior year $2.8 million loss on the sale of subordinated debt issued by Lakeland from the Provident investment portfolio prior to the merger. Additionally, insurance agency income increased $2.1 million to $18.3 million for the year ended December 31, 2025, compared to $16.2 million for 2024, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, BOLI income decreased $1.6 million to $10.1 million for the year ended December 31, 2025, compared to 2024, primarily due to a decrease in benefit claims, partially offset by an increase in income related to the addition of Lakeland's BOLI, while wealth management income decreased $1.3 million to $29.3 million for the year ended December 31, 2025, compared to 2024, mainly due to a decrease in the average market value of assets under management during the period.

Non-interest expense totaled $458.7 million for the year ended December 31, 2025, an increase of $1.1 million, compared to $457.5 million for 2024. Compensation and benefits expense increased $34.8 million to $253.1 million for the year ended December 31, 2025, compared to $218.3 million for 2024 primarily attributable to the addition of Lakeland personnel. Amortization of intangibles increased $8.1 million to $37.1 million for the year ended December 31, 2025, compared to $28.9 million for 2024, largely due to core deposit intangible amortization related to the addition of Lakeland. Net occupancy expense increased $7.8 million to $52.8 million for the year ended December 31, 2025, compared to 2024, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland. Other operating expenses increased $5.1 million to $59.8 million for the year ended December 31, 2025, compared to $54.7 million for 2024, primarily due to a $1.4 million increase in write-downs on foreclosed property, combined with additional expenses due to the addition of Lakeland. Data processing expense increased $1.8 million to $37.4 million for the year ended December 31, 2025, compared to $35.6 million for 2024, primarily due to the addition of Lakeland. Partially offsetting these increases to non-interest expense, merger-related expenses decreased $56.9 million for the year ended December 31, 2025.

Income Tax Expense

For the year ended December 31, 2025, the Company's income tax expense was $117.0 million with an effective tax rate of 28.7%, compared with $34.1 million with an effective tax rate of 22.8% for 2024. The increase in tax expense for the year ended December 31, 2025, compared with last year was primarily due to an increase in taxable income, partially resulting from the prior year initial CECL provision for credit losses on loans of $60.1 million recorded in accordance with GAAP requirements for accounting for business combinations and additional expenses from the Lakeland merger. Additionally, the increase in tax expense and the effective tax rate was due to a prior year $10.0 million tax benefit related to the revaluation of deferred tax assets.

Asset Quality

The Company’s total non-performing loans at December 31, 2025 were $78.4 million, or 0.40% of total loans, compared to $100.4 million or 0.52% of total loans at September 30, 2025 and $72.1 million, or 0.39% of total loans at December 31, 2024. The $22.0 million decrease in non-performing loans at December 31, 2025, compared to the trailing quarter, consisted of a $14.1 million decrease in non-performing construction loans and a $12.2 million decrease in non-performing commercial mortgage loans, partially offset by a $1.8 million increase in non-performing multi-family loans, a $1.2 million increase in non-performing residential loans, a $736,000 increase in non-performing commercial loans and a $468,000 increase in non-performing consumer loans. The reduction in non-performing loans for the quarter was driven by the sale of non-accruing notes, with associated charge-offs of $1.3 million. As of December 31, 2025, impaired loans totaled $63.3 million with related specific reserves of $5.9 million, compared with impaired loans totaling $85.4 million with related specific reserves of $6.2 million as of September 30, 2025. As of December 31, 2024, impaired loans totaled $55.4 million with related specific reserves of $7.5 million.

At December 31, 2025, the Company’s allowance for credit losses related to the loan portfolio was 0.95% of total loans, compared to 0.97% and 1.04% at September 30, 2025 and December 31, 2024, respectively. The allowance for credit losses decreased $8.7 million to $184.8 million at December 31, 2025, from $193.4 million at December 31, 2024. The decrease in the allowance for credit losses on loans at December 31, 2025 compared to December 31, 2024 was primarily due to net charge-offs of $12.8 million, partially offset by a $4.1 million provision for credit losses on loans.

The following table sets forth accruing past due loans and non-accrual loans on the dates indicated, as well as certain asset quality ratios.

  December 31, 2025 September 30, 2025 December 31, 2024
  Number
of
Loans
 Principal
Balance
of Loans
 Number
of
Loans
 Principal
Balance
of Loans
 Number
of
Loans
 Principal
Balance
of Loans
  (Dollars in thousands)
Accruing past due loans:            
30 to 59 days past due:            
Commercial mortgage loans 8 $15,652  3 $956  7 $8,538 
Multi-family mortgage loans            
Construction loans            
Residential mortgage loans 34  8,344  32  8,085  22  6,388 
Total mortgage loans 42  23,996  35  9,041  29  14,926 
Commercial loans 9  1,303  8  729  9  3,026 
Consumer loans 49  2,209  40  2,739  47  3,152 
Total 30 to 59 days past due 100 $27,508  83 $12,509  85 $21,104 
             
60 to 89 days past due:            
Commercial mortgage loans  $  4 $4,314  4 $3,954 
Multi-family mortgage loans 1  932  1  879     
Construction loans            
Residential mortgage loans 16  4,177  22  6,180  17  5,049 
Total mortgage loans 17  5,109  27  11,373  21  9,003 
Commercial loans 3  633  4  1,390  3  1,117 
Consumer loans 14  781  11  299  15  856 
Total 60 to 89 days past due 34  6,523  42  13,062  39  10,976 
Total accruing past due loans 134 $34,031  125 $25,571  124 $32,080 
             
Non-accrual:            
Commercial mortgage loans 11 $26,856  13 $39,036  17 $20,883 
Multi-family mortgage loans 3  2,268  1  424  6  7,498 
Construction loans 1  5,159  2  19,220  2  13,246 
Residential mortgage loans 32  9,062  29  7,858  23  4,535 
Total mortgage loans 47  43,345  45  66,538  48  46,162 
Commercial loans 28  33,219  42  32,483  32  24,243 
Consumer loans 27  1,856  19  1,388  23  1,656 
Total non-accrual loans 102 $78,420  106 $100,409  103 $72,061 
             
Non-performing loans to total loans    0.40%    0.52%    0.39%
Allowance for loan losses to total non-performing loans    235.61%    186.21%    268.43%
Allowance for loan losses to total loans    0.95%    0.97%    1.04%


At December 31, 2025 and December 31, 2024, the Company held foreclosed assets of $2.0 million and $9.5 million, respectively. During the year ended December 31, 2025, there was a write-down of one foreclosed commercial property of $2.7 million based on a contracted sales price. The sale of this property closed in the second quarter of 2025, which reduced foreclosed assets by an additional $5.8 million. There was one addition to foreclosed assets with an aggregate carrying value of $1.0 million. Foreclosed assets at December 31, 2025 consisted of commercial real estate. Total non-performing assets at December 31, 2025 decreased $1.1 million to $80.4 million, or 0.32% of total assets, from $81.5 million, or 0.34% of total assets at December 31, 2024.

Balance Sheet Summary

Total assets at December 31, 2025 were $24.98 billion, a $928.9 million increase from December 31, 2024. The increase in total assets was primarily due to a $844.7 million increase in loans held for investment and a $354.0 million increase in total investments, partially offset by a $147.7 million decrease in loans held for sale, and decreases in intangibles and other assets.

The Company’s loans held for investment portfolio totaled $19.50 billion at December 31, 2025 and $18.66 billion at December 31, 2024. The loan portfolio consisted of the following:

 December 31, 2025 September 30, 2025 December 31, 2024
 (Dollars in thousands)
Mortgage loans:     
Commercial$7,398,792  $7,318,725  $7,228,078 
Multi-family 3,667,337   3,534,751   3,382,933 
Construction 662,112   719,961   823,503 
Residential 1,974,324   1,977,483   2,010,637 
Total mortgage loans 13,702,565   13,550,920   13,445,151 
Commercial loans 4,843,466   4,837,934   4,447,672 
Mortgage warehouse lines 357,051   292,133   160,928 
Consumer loans 612,431   614,983   613,819 
Total gross loans 19,515,513   19,295,970   18,667,570 
Premiums on purchased loans 1,524   1,362   1,338 
Net deferred fees and unearned discounts (12,976)  (11,265)  (9,538)
Total loans$19,504,061  $19,286,067  $18,659,370 


For the year ended December 31, 2025, the Company had net increases of $395.8 million in commercial loans, $284.4 million in multi-family loans and $170.7 million in commercial mortgage loans, partially offset by net decreases of $161.4 million in construction loans, $36.3 million in residential mortgage loans and $1.4 million in consumer loans. Commercial loans, consisting of commercial real estate, multi-family, commercial, mortgage warehouse and construction loans, represented 86.7% of the loan portfolio at December 31, 2025, compared to 85.9% at December 31, 2024.

For the year ended December 31, 2025, loan funding, including advances on lines of credit, totaled $10.11 billion, compared with $4.82 billion for the same period in 2024.

At December 31, 2025, the Company’s unfunded loan commitments totaled $3.71 billion, including commitments of $2.41 billion in commercial loans, $469.6 million in construction loans and $138.6 million in commercial mortgage loans. Unfunded loan commitments at September 30, 2025 and December 31, 2024 totaled $3.82 billion and $2.73 billion, respectively.

The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.74 billion at December 31, 2025, compared to $2.89 billion at September 30, 2025 and $1.79 billion at December 31, 2024.

Total investment securities were $3.58 billion at December 31, 2025, a $354.0 million increase from December 31, 2024. This increase was primarily due to purchases of mortgage-backed securities and a decrease in unrealized losses on available for sale debt securities.

Total deposits increased $654.9 million during the year ended December 31, 2025, to $19.28 billion. Total savings and demand deposit accounts increased $535.7 million to $15.99 billion at December 31, 2025, while total time deposits increased $119.1 million to $3.29 billion at December 31, 2025. The increase in savings and demand deposits was largely attributable to a $372.0 million increase in interest-bearing demand deposits and a $328.7 million increase in money market deposits, partially offset by a $90.4 million decrease in savings deposits and a $74.5 million decrease in non-interest-bearing demand deposits. The increase in time deposits consisted of a $253.6 million increase in brokered time deposits, partially offset by a $134.5 million decrease in retail time deposits.

Borrowed funds increased $91.5 million during the year ended December 31, 2025, to $2.11 billion. Borrowed funds represented 8.5% of total assets at December 31, 2025, a decrease from 13.9% at December 31, 2024.

Stockholders’ equity increased $232.0 million during the year ended December 31, 2025, to $2.83 billion, primarily due to net income earned for the period and a decrease in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the year ended December 31, 2025, common stock repurchases totaled 158,293 shares at an average cost of $18.07 per share, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of December 31, 2025, approximately 814,000 shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(6) at December 31, 2025 were $21.69 and $15.70, respectively, compared with $19.93 and $13.66, respectively, at December 31, 2024.

About the Company

Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering "Commitment you can count on" since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.

Post Earnings Conference Call

Representatives of the Company will hold a conference call for investors on Wednesday, January 28, 2026 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter and year ended December 31, 2025. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on "Webcast."

A supplemental 4th Quarter results investor presentation is also available on our investor relations website under “Presentations.”

Forward Looking Statements

Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” "project," "intend," “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, tariffs, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity.

The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.

Footnotes

(1) Annualized adjusted pre-provision, net-revenue return on average assets, annualized return on average tangible equity, tangible common equity capital ratio, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.

          
PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in Thousands, except share data) (Unaudited)
    
 At or for the
Three months ended
 At or for the
Year ended
 December 31, September 30, December 31, December 31, December 31,
  2025   2025   2024   2025   2024 
Statement of Income         
Net interest income$197,411  $194,332  $181,737  $760,565  $600,614 
Provision (benefit) charge for credit losses (1,213)  7,044   8,880   3,581   87,564 
Non-interest income 28,311   27,419   24,175   109,836   94,113 
Non-interest expense 114,690   113,092   134,323   458,663   457,548 
Income before income tax expense 112,245   101,615   62,709   408,157   149,615 
Net income 83,431   71,720   48,524   291,160   115,525 
Diluted earnings per share$0.64  $0.55  $0.37  $2.23  $1.05 
Interest rate spread 2.83%  2.80%  2.63%  2.77%  2.63%
Net interest margin 3.44%  3.43%  3.28%  3.39%  3.26%
          
Profitability         
Annualized return on average assets 1.34%  1.16%  0.81%  1.19%  0.57%
Annualized adjusted return on average assets(1) 1.34%  1.16%  1.05%  1.19%  0.78%
Annualized return on average equity 11.78%  10.39%  7.36%  10.71%  5.07%
Annualized adjusted return on average equity(1) 11.78%  10.39%  9.53%  10.71%  6.95%
Annualized return on average tangible equity(4) 17.58%  16.01%  12.21%  16.58%  8.58%
Annualized adjusted return on average tangible equity(1) 17.58%  16.01%  15.39%  16.58%  11.29%
Annualized adjusted non-interest expense to average assets(5) 1.84%  1.83%  1.90%  1.87%  1.97%
Efficiency ratio(6) 50.97%  51.01%  55.43%  52.44%  57.67%
          
Asset Quality         
Non-accrual loans$78,420  $100,409  $72,061  $78,420  $72,061 
90+ and still accruing              
Non-performing loans 78,420   100,409   72,061   78,420   72,061 
Foreclosed assets 2,015   2,015   9,473   2,015   9,473 
Non-performing assets 80,435   102,424   81,534   80,435   81,534 
Non-performing loans to total loans 0.40%  0.52%  0.39%  0.40%  0.39%
Non-performing assets to total assets 0.32%  0.41%  0.34%  0.32%  0.34%
Allowance for loan losses$184,767  $186,969  $193,432  $184,767  $193,432 
Allowance for loan losses to total non-performing loans 235.61%  186.21%  268.43%  235.61%  268.43%
Allowance for loan losses to total loans 0.95%  0.97%  1.04%  0.95%  1.04%
Net loan charge-offs$4,152   5,401  $5,493  $12,790  $14,560 
Annualized net loan charge offs to average total loans 0.09%  0.11%  0.12%  0.07%  0.09%
          
Average Balance Sheet Data         
Assets$24,775,214  $24,518,290  $23,908,514  $24,429,121  $20,382,148 
Loans, net 19,149,055   18,906,763   18,487,443   18,870,134   15,600,431 
Earning assets 22,798,735   22,492,065   21,760,458   22,395,056   18,403,149 
Savings and demand deposits 16,291,161   15,602,031   15,581,608   15,655,186   13,103,803 
Borrowings 1,531,419   2,136,111   1,711,806   2,018,256   1,983,674 
Interest-bearing liabilities 17,867,637   17,704,286   17,093,382   17,622,488   14,596,325 
Stockholders' equity 2,810,166   2,738,414   2,624,019   2,718,331   2,279,525 
Average yield on interest-earning assets 5.66%  5.76%  5.66%  5.68%  5.68%
Average cost of interest-bearing liabilities 2.83%  2.96%  3.03%  2.91%  3.05%
          


Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
(Dollars in Thousands, except share data)

The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.

           
(1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity
                    
  Three Months Ended Year Ended
  December 31, September 30, December 31, December 31, December 31,
   2025   2025   2024   2025   2024 
Net Income $83,431  $71,720  $48,524  $291,160  $115,525 
Merger-related transaction costs        20,184      56,867 
Less: income tax expense        (5,819)     (14,010)
Annualized adjusted net income $83,431  $71,720  $62,889  $291,160  $158,382 
Less: Amortization of Intangibles (net of tax) $6,180  $6,639  $6,649  $26,712  $20,226 
Annualized adjusted net income for annualized adjusted return on average tangible equity $89,611  $78,359  $69,538  $317,872  $178,607 
           
Annualized Adjusted Return on Average Assets  1.34%  1.16%  1.05%  1.19%  0.78%
Annualized Adjusted Return on Average Equity  11.78%  10.39%  9.53%  10.71%  6.95%
Annualized Adjusted Return on Average Tangible Equity  17.58%  16.01%  15.39%  16.58%  11.29%
           
(2) Annualized adjusted pre-provision, net-revenue ("PPNR") returns on average assets, average equity and average tangible equity
                    
  Three Months Ended Year Ended
  December 31, September 30, December 31, December 31, December 31,
   2025   2025   2024   2025   2024 
Net income $83,431  $71,720  $48,524  $291,160  $115,525 
Adjustments to net income:          
Provision (benefit) charge for credit losses  (1,213)  7,044   8,880   3,581   87,564 
Net loss on Lakeland bond sale              2,839 
Merger-related transaction costs       20,184      56,867 
Writedown on ORE property           2,690  —    
Income tax expense  28,814   29,895   14,185   116,997   34,090 
Adjusted PPNR income $111,032  $108,659  $91,773  $414,428  $296,885 
           
Annualized Adjusted PPNR income $440,507  $431,093  $365,097  $414,428  $296,885 
Average assets $24,775,214  $24,518,290  $23,908,514  $24,429,121  $20,382,148 
Average equity $2,810,166  $2,738,414  $2,624,019  $2,718,331  $2,279,525 
Average tangible equity $2,022,451  $1,941,625  $1,797,994  $1,916,703  $1,581,339 
           
Annualized Adjusted PPNR return on average assets  1.78%  1.76%  1.53%  1.70%  1.46%
Annualized PPNR return on average equity  15.68%  15.74%  13.91%  15.25%  13.02%
Annualized PPNR return on average tangible equity  21.78%  22.20%  20.31%  21.62%  18.77%
           
(3) Tangible Common Equity Ratio, Book and Tangible Book Value per Share       December 31, December 31,
         2025   2024 
           
Total assets       $24,980,710  $24,051,825 
Less: total intangible assets        782,152   819,230 
Total tangible assets       $24,198,558  $23,232,595 
           
Total stockholders' equity       $2,833,212  $2,601,207 
Less: total intangible assets        782,152   819,230 
Total tangible stockholders' equity       $2,051,060  $1,781,977 
           
Tangible common equity ratio        8.48%  7.67%
Shares outstanding        130,619,949   130,489,493 
           
Book value per share (total stockholders' equity/shares outstanding)       $21.69  $19.93 
Tangible book value per share (total tangible stockholders' equity/shares outstanding)       $15.70  $13.66 
           
(4) Annualized Return on Average Tangible Equity          
  Three Months Ended Year Ended
  December 31, September 30, December 31, December 31, December 31,
   2025   2025   2024   2025   2024 
Total average stockholders' equity $2,810,166  $2,738,414  $2,624,019  $2,718,331  $2,279,525 
Less: total average intangible assets  787,715   796,789   826,025   801,628   698,186 
Total average tangible stockholders' equity $2,022,451  $1,941,625  $1,797,994  $1,916,703  $1,581,339 
           
Net income $83,431  $71,720  $48,524  $291,160  $115,525 
Less: Amortization of Intangibles, net of tax  6,180   6,639   6,649   26,712   20,226 
Total net income $89,611  $78,359  $55,173  $317,872  $135,751 
           
Annualized return on average tangible equity (net income/total average tangible stockholders' equity)  17.58%  16.01%  12.21%  16.58%  8.58%
           
           
(5) Annualized Adjusted Non-Interest Expense to Average Assets          
  Three Months Ended Year Ended
  December 31, September 30, December 31, December 31, December 31,
   2025   2025   2024   2025   2024 
Reported non-interest expense $114,690  $113,092  $134,323  $458,663  $457,548 
Adjustments to non-interest expense:          
Merger-related transaction costs        20,184      56,867 
Write-down of foreclosed property $  $  $  $2,690  $ 
Adjusted non-interest expense $114,690  $113,092  $114,139  $455,973  $400,681 
           
Annualized adjusted non-interest expense $455,020  $448,680  $454,075  $455,973  $400,681 
           
Average assets $24,775,214  $24,518,290  $23,908,514  $24,429,121  $20,382,148 
           
Annualized adjusted non-interest expense/average assets  1.84%  1.83%  1.90%  1.87%  1.97%
           
(6) Efficiency Ratio Calculation          
  Three Months Ended Year Ended
  December 31, September 30, December 31, December 31, December 31,
   2025   2025   2024   2025   2024 
Net interest income $197,411  $194,332  $181,737  $760,565  $600,614 
Non-interest income  28,311   27,419   24,175   109,836   94,113 
Adjustments to non-interest income:          
Net (gain) loss on securities transactions  (690)  (67)  14   (843)  2,986 
Adjusted non-interest income  27,621   27,352   24,189   108,993   97,099 
Total income $225,032  $221,684  $205,912  $869,558  $694,727 
           
Adjusted non-interest expense $114,690  $113,092  $114,139  $455,973  $400,681 
           
Efficiency ratio (adjusted non-interest expense/income)  50.97%  51.01%  55.43%  52.44%  57.67%
           


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
December 31, 2025 (Unaudited) and December 31, 2024
(Dollars in Thousands)
    
AssetsDecember 31, 2025 December 31, 2024
Cash and cash equivalents 211,484   205,939 
Available for sale debt securities, at fair value 3,164,756   2,768,915 
Held to maturity debt securities, (net of $16,000 allowance as of December 31, 2025 (unaudited) and $14,000 allowance as of December 31, 2024) 282,127   327,623 
Equity securities, at fair value 19,875   19,110 
Federal Home Loan Bank stock 115,687   112,767 
Loans held for sale 14,710   162,453 
Loans held for investment 19,504,061   18,659,370 
Less allowance for credit losses 184,767   193,432 
Net loans 19,334,004   18,628,391 
Foreclosed assets, net 2,015   9,473 
Banking premises and equipment, net 113,328   119,622 
Accrued interest receivable 95,798   91,160 
Intangible assets 782,152   819,230 
Bank-owned life insurance 414,371   405,893 
Other assets 445,113   543,702 
Total assets$24,980,710  $24,051,825 
    
Liabilities and Stockholders' Equity   
Deposits:   
Demand deposits$14,402,148  $13,775,991 
Savings deposits 1,589,259   1,679,667 
Certificates of deposit of $250,000 or more 929,989   789,342 
Other time deposits 2,357,287   2,378,813 
Total deposits 19,278,683   18,623,813 
Mortgage escrow deposits 40,253   42,247 
Borrowed funds 2,111,955   2,020,435 
Subordinated debentures 406,582   401,608 
Other liabilities 310,025   362,515 
Total liabilities 22,147,498   21,450,618 
    
Stockholders' equity:   
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued     
Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,619,949 shares outstanding as of December 31, 2025 and 130,489,493 outstanding as of December 31, 2024. 1,376   1,376 
Additional paid-in capital 1,844,949   1,834,495 
Retained earnings 1,154,364   989,111 
Accumulated other comprehensive loss (76,183)  (135,355)
Treasury stock (91,294)  (88,420)
Total stockholders' equity 2,833,212   2,601,207 
Total liabilities and stockholders' equity$24,980,710  $24,051,825 


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended December 31, 2025, September 30, 2025 (Unaudited) and December 31, 2024,
and year ended December 31, 2025 (Unaudited) and 2024
(Dollars in Thousands, except per share data)
          
 Three Months Ended Year Ended
 December 31, September 30, December 31, December 31, December 31,
  2025   2025  2024   2025  2024 
Interest and dividend income:         
Real estate secured loans$196,082  $197,252 $194,236  $773,179 $655,868 
Commercial loans 81,652   81,943  75,978   318,268  251,793 
Consumer loans 10,504   10,847  10,815   41,974  36,635 
Available for sale debt securities, equity securities and Federal Home Loan Bank stock 33,981   33,578  27,197   128,647  85,895 
Held to maturity debt securities 1,835   1,897  2,125   7,694  8,885 
Deposits, federal funds sold and other short-term investments 785   764  1,596   3,012  7,062 
Total interest income 324,839   326,281  311,947   1,272,774  1,046,138 
          
Interest expense:         
Deposits 104,232   102,094  105,922   400,003  349,523 
Borrowed funds 15,199   21,307  15,652   78,754  73,523 
Subordinated debt 7,997   8,548  8,636   33,452  22,478 
Total interest expense 127,428   131,949  130,210   512,209  445,524 
Net interest income 197,411   194,332  181,737   760,565  600,614 
Provision (benefit) charge for credit losses (1,213)  7,044  8,880   3,581  87,564 
Net interest income after provision for credit losses 198,624   187,288  172,857   756,984  513,050 
          
Non-interest income:         
Fees 11,100   11,336  9,687   42,827  34,114 
Wealth management income 7,627   7,349  7,655   29,252  30,533 
Insurance agency income 3,854   3,852  3,289   18,299  16,201 
Bank-owned life insurance 2,790   2,662  2,261   10,130  11,709 
Net gain (loss) on securities transactions 690   67  (14)  843  (2,986)
Other income 2,250   2,153  1,297   8,485  4,542 
Total non-interest income 28,311   27,419  24,175   109,836  94,113 
          
Non-interest expense:         
Compensation and employee benefits 64,316   63,202  59,937   253,133  218,341 
Net occupancy expense 13,078   12,773  12,562   52,789  45,014 
Data processing expense 9,110   9,102  9,881   37,415  35,579 
FDIC Insurance 2,758   3,418  3,411   12,902  12,964 
Amortization of intangibles 8,578   9,497  9,511   37,074  28,931 
Advertising and promotion expense 1,406   1,640  1,485   5,530  5,146 
Merger-related expenses      20,184     56,867 
Other operating expenses 15,444   13,460  17,352   59,820  54,706 
Total non-interest expense 114,690   113,092  134,323   458,663  457,548 
Income before income tax expense 112,245   101,615  62,709   408,157  149,615 
Income tax expense 28,814   29,895  14,185   116,997  34,090 
Net income$83,431  $71,720 $48,524  $291,160 $115,525 
          
Basic earnings per share$0.64  $0.55 $0.37  $2.23 $1.05 
Average basic shares outstanding 130,530,391   130,506,517  130,067,244   130,462,418  109,668,911 
          
Diluted earnings per share$0.64  $0.55 $0.37  $2.23 $1.05 
Average diluted shares outstanding 130,589,271   130,553,819  130,163,872   130,507,070  109,712,732 


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
(Dollars in Thousands) (Unaudited)
 
 December 31, 2025 September 30, 2025 December 31, 2024
 Average
Balance
 Interest Average
Yield/
Cost
 Average
Balance
 Interest Average
Yield/
Cost
 Average
Balance
 Interest Average
Yield/
Cost
Interest-Earning Assets:                 
Deposits$90,490 $785 3.44% $79,471 $764 3.82% $117,998 $1,596 5.38%
Available for sale debt securities 3,161,753  31,622 4.00%  3,070,080  30,952 4.03%  2,720,065  24,827 3.69%
Held to maturity debt securities, net(1) 287,635  1,835 2.55%  299,506  1,897 2.53%  328,147  2,125 2.59%
Equity securities, at fair value 19,781  143 2.90%  19,457  120 2.47%  19,920  236 4.71%
Total securities 3,469,169  33,600 3.87%  3,389,043  32,969 3.89%  3,068,132  27,188 3.58%
Federal Home Loan Bank stock 90,021  2,216 9.76%  116,788  2,506 8.58%  86,885  2,134 9.82%
Net loans:(2)                 
Total mortgage loans 13,501,084  196,082 5.77%  13,390,032  197,252 5.85%  13,287,942  194,236 5.75%
Total commercial loans 5,036,657  81,652 6.43%  4,908,131  81,943 6.63%  4,587,048  75,978 6.54%
Total consumer loans 611,314  10,504 6.82%  608,600  10,847 7.07%  612,453  10,815 7.02%
Total net loans 19,149,055  288,238 5.98%  18,906,763  290,042 6.09%  18,487,443  281,029 5.99%
Total interest-earning assets$22,798,735 $324,839 5.66% $22,492,065 $326,281 5.76% $21,760,458 $311,947 5.66%
                  
Non-Interest Earning Assets:                 
Cash and due from banks 152,621      154,859      159,151    
Other assets 1,823,858      1,871,366      1,988,905    
Total assets$24,775,214     $24,518,290     $23,908,514    
                  
Interest-Bearing Liabilities:                 
Demand deposits$10,960,066 $72,283 2.62% $10,280,314 $70,584 2.72% $10,115,827 $71,265 2.80%
Savings deposits 1,585,837  889 0.22%  1,596,072  896 0.22%  1,677,725  968 0.23%
Time deposits 3,384,538  31,060 3.64%  3,287,241  30,614 3.69%  3,187,172  33,689 4.21%
Total Deposits 15,930,441  104,232 2.60%  15,163,627  102,094 2.67%  14,980,724  105,922 2.81%
                  
Borrowed funds 1,531,419  15,199 3.94%  2,136,111  21,307 3.96%  1,711,806  15,652 3.64%
Subordinated debentures 405,777  7,997 7.82%  404,548  8,548 8.38%  400,852  8,636 8.57%
Total interest-bearing liabilities 17,867,637  127,428 2.83%  17,704,286  131,949 2.96%  17,093,382  130,210 3.03%
                  
Non-Interest Bearing Liabilities:                 
Non-interest bearing deposits 3,745,258      3,725,645      3,788,056    
Other non-interest bearing liabilities 352,153      349,945      403,057    
Total non-interest bearing liabilities 4,097,411      4,075,590      4,191,113    
Total liabilities 21,965,048      21,779,876      21,284,495    
Stockholders' equity 2,810,166      2,738,414      2,624,019    
Total liabilities and stockholders' equity$24,775,214     $24,518,290     $23,908,514    
                  
Net interest income  $197,411     $194,332     $181,737  
                  
Net interest rate spread    2.83%     2.80%     2.63%
Net interest-earning assets$4,931,098     $4,787,779     $4,667,076    
                  
Net interest margin(3)    3.44%     3.43%     3.28%
                  
Ratio of interest-earning assets to total interest-bearing liabilities1.28x     1.27x     1.27x    


  
(1)Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(2)Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.
(3)Annualized net interest income divided by average interest-earning assets.


The following table summarizes the quarterly net interest margin for the previous five quarters.   
 12/31/25 9/30/25 6/30/25 3/31/25 12/31/24
 4th Qtr. 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr.
Interest-Earning Assets:         
Securities3.99% 3.89% 3.81% 3.73% 3.55%
Net loans5.98% 6.09% 6.01% 5.95% 5.99%
Total interest-earning assets5.66% 5.76% 5.68% 5.63% 5.66%
          
Interest-Bearing Liabilities:         
Total deposits2.60% 2.67% 2.62% 2.64% 2.81%
Total borrowings3.94% 3.96% 3.94% 3.76% 3.64%
Total interest-bearing liabilities2.83% 2.96% 2.94% 2.90% 3.03%
          
Interest rate spread2.83% 2.80% 2.74% 2.73% 2.63%
Net interest margin3.44% 3.43% 3.36% 3.34% 3.28%
          
Ratio of interest-earning assets to interest-bearing liabilities1.28x 1.27x 1.27x 1.27x 1.27x


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)
            
 December 31, 2025 December 31, 2024
 Average   Average Average   Average
 Balance Interest Yield/Cost Balance Interest Yield/Cost
Interest-Earning Assets:           
Deposits$82,383 $3,012 3.66% $36,932 $7,062 5.23%
Available for sale debt securities 3,005,560  119,152 3.96%  2,323,158  77,105 3.32%
Held to maturity debt securities, net(1) 305,490  7,694 2.52%  344,903  8,885 2.58%
Equity securities, at fair value 19,417  612 3.16%  12,367  512 4.14%
Total securities 3,330,467  127,458 3.82%  2,680,428  86,502 3.23%
Federal Home Loan Bank stock 112,072  8,883 7.93%  85,358  8,278 9.70%
Net loans:(2)           
Total mortgage loans 13,457,994  773,179 5.75%  11,333,540  655,868 5.79%
Total commercial loans 4,801,729  318,268 6.63%  3,768,388  251,793 6.68%
Total consumer loans 610,411  41,974 6.88%  498,503  36,635 7.35%
Total net loans 18,870,134  1,133,421 6.01%  15,600,431  944,296 6.05%
Total interest-earning assets$22,395,056 $1,272,774 5.68% $18,403,149 $1,045,626 5.68%
            
Non-Interest Earning Assets:           
Cash and due from banks 147,184      233,829    
Other assets 1,886,881      1,745,170    
Total assets$24,429,121     $20,382,148    
            
Interest-Bearing Liabilities:           
Demand deposits$10,304,843 $273,101 2.65% $8,480,380 $245,874 2.90%
Savings deposits 1,627,710  3,609 0.22%  1,502,852  3,443 0.23%
Time deposits 3,267,755  123,293 3.77%  2,367,144  100,206 4.23%
Total deposits 15,200,308  400,003 2.63%  12,350,376  349,523 2.83%
Borrowed funds 2,018,256  78,754 3.90%  1,983,674  73,523 3.71%
Subordinated debentures 403,924  33,452 8.28%  262,275  22,478 8.57%
Total interest-bearing liabilities$17,622,488 $512,209 2.91% $14,596,325 $445,524 3.05%
            
Non-Interest Bearing Liabilities:           
Non-interest bearing deposits 3,722,633      3,120,571    
Other non-interest bearing liabilities 365,669      385,727    
Total non-interest bearing liabilities 4,088,302      3,506,298    
Total liabilities 21,710,790      18,102,623    
Stockholders' equity 2,718,331      2,279,525    
Total liabilities and stockholders' equity$24,429,121     $20,382,148    
            
Net interest income  $760,565     $600,102  
            
Net interest rate spread    2.77%     2.63%
Net interest-earning assets$4,772,568     $3,806,824    
            
Net interest margin(3)    3.39%     3.26%
            
Ratio of interest-earning assets to total interest-bearing liabilities1.27x     1.26x    
            
            
(1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans.
(3) Annualized net interest income divided by average interest-earning assets.

                           

The following table summarizes the year-to-date net interest margin for the previous three years.
       
 Year Ended 
 December 31,
2025
 December 31,
2024
 December 31,
2023
 
Interest-Earning Assets:      
Securities3.93% 3.43% 2.62% 
Net loans6.01% 6.05% 5.37% 
Total interest-earning assets5.68% 5.68% 4.87% 
       
Interest-Bearing Liabilities:      
Total deposits2.63% 2.83% 1.99% 
Total borrowings3.90% 3.71% 3.41% 
Total interest-bearing liabilities2.91% 3.05% 2.24% 
       
Interest rate spread2.77% 2.63% 2.63% 
Net interest margin3.39% 3.26% 3.16% 
       
Ratio of interest-earning assets to interest-bearing liabilities1.27x 1.26x 1.31x 

SOURCE: Provident Financial Services, Inc.
CONTACT: Investor Relations, 1-732-590-9300
Web Site: http://www.Provident.Bank


Primary Logo